Business and government impersonation scams are next, with $133 million in reported crypto losses since 2021. These scams can begin with a text message about an allegedly unlawful Amazon transaction or an alarming online pop-up that appears to be a Microsoft security notice. According to the FTC, over half of those who reported losing digital currency in a scam claimed it began with an ad, post, or message on a social media network. Last year, the cryptocurrency enthusiasm reached a fever pitch, with bitcoin reaching a record high of $69,000 in November. Crypto Has Several Features Scammers are drawn to crypto for various reasons, which may explain why reported losses in 2021 were approximately sixty times higher than in 2018. There is no centralized authority, such as a bank, to flag questionable transactions and attempt to prevent fraud before it occurs. Crypto transfers are irreversible; once the money is gone, it’s gone forever. And the majority of people are still unaware of how cryptography works. These factors aren’t unique to cryptocurrency transactions, but they all play into scammers’ hands. Digital Currency Fraud According to reports, social media and cryptocurrency are an explosive combination for fraud, with $575 million in “bogus investment possibilities” accounting for approximately half of all losses due to digital currency fraud. The report has also revealed nearly four out of every ten dollars lost in a socia...
